- NZD/USD up 0.44% on the day, trades around 0.7294 at the time of writing.
- The major is extending upside for 3rd consecutive session after bouncing off 55-EMA.
- Upside remains capped at 20-DMA at 0.7307, break above could see further upside.
- The pair has retraced above 5-DMA which is currently immediate support at 0.7253.
- Technical studies are turning slightly bullish. RSI and Stochs have turned north. We see +ve DMI crossover.
- Rejection at 20-DMA will see test of strong support at 0.7186 (converged 38.2% Fib and 55-EMA). Violation at 0.7186 will see further weakness.
Support levels - 0.7253 (5-DMA), 0.7186 (converged 55-EMA & 38.2% Fib retrace of 0.6780 to 0.7435 rally), 0.7151 (200-DMA)
Resistance levels - 0.7307 (20-DMA), 0.7350 (Feb 6 high), 0.74
Recommendation: Good to go long on break above 20-DMA, SL: 0.7250, TP: 0.7350/ 0.74/ 0.7435.
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